Break & Retest Strategy (Should Be A Favorite)
Break and Retest Strategy:
Bullish example on chart:
1) Quick price action move or continuation phase on chart
2) Price action protected the critical line, structure and future stop loss of 119.000, during exhaustion phase. Could use a fib ret 50%-61.8% for entry.
3) Showed a great two day Engulfing pattern on chart for entry for buy market trade at close of that candlestick. (I use harmi, engulfing and pin bar candle stick patterns to entry all trades, especially on this break and retest strategy)
4) Stop loss would have been at 119.00 (yes, that is 88 pips from entry)
5) Targets 1st target 88 pips from entry, 2nd target 176, 3rd target 264 and 4th target is 352.
Related to daily chart, adjust your risk management appropriately just like all trades you do- is at beginning of trade set stops, entry, targets.
Bullish example on chart:
1) Quick price action move or continuation phase on chart
2) Price action protected the critical line, structure and future stop loss of 119.000, during exhaustion phase. Could use a fib ret 50%-61.8% for entry.
3) Showed a great two day Engulfing pattern on chart for entry for buy market trade at close of that candlestick. (I use harmi, engulfing and pin bar candle stick patterns to entry all trades, especially on this break and retest strategy)
4) Stop loss would have been at 119.00 (yes, that is 88 pips from entry)
5) Targets 1st target 88 pips from entry, 2nd target 176, 3rd target 264 and 4th target is 352.
Related to daily chart, adjust your risk management appropriately just like all trades you do- is at beginning of trade set stops, entry, targets.